Week 12 of 2026 highlights how seasonal slowdowns and global macroeconomic pressures are simultaneously shaping ship recycling markets. Eid holidays across the Indian Subcontinent have temporarily reduced activity, while escalating geopolitical tensions in the Middle East continue to influence energy markets, freight rates, and vessel recycling supply.

Oil prices surged during the week, briefly approaching USD 120 per barrel before stabilizing above USD 100. This sustained strength in energy markets has supported freight earnings, with the Baltic Dry Index remaining above 2,000 levels. As a result, older vessels continue trading profitably, delaying recycling decisions and tightening the availability of demolition candidates.

Across the ship recycling markets of Bangladesh, India, Pakistan, and Turkey, this dynamic has created a clear imbalance. Pricing levels remain firm, yet the supply of vessels is limited.

Bangladesh retained its position as the leading recycling destination on pricing but recorded no transactions during the week due to the Eid holiday slowdown and ongoing constraints related to financing approvals. The weakening Bangladeshi Taka and marginal increases in local steel prices continue to influence recycler margins, while regulatory scrutiny remains evident in cases involving sanctioned vessels.

India experienced a cautious week, shaped by both external and domestic pressures. Disruptions to oil supply channels and rising energy costs have added uncertainty, while the Indian Rupee weakened further against the U.S. Dollar. Steel plate prices remained volatile within a narrow range, making it difficult for recyclers to establish firm bidding levels. However, India continues to benefit from a strong position in Hong Kong Convention compliant recycling capacity, supporting its long-term competitiveness.

Pakistan showed signs of improving sentiment, supported by relatively stable currency levels and firm steel plate prices. The market is gradually strengthening its position through expanding HKC compliant yard capacity, which is attracting attention from owners seeking compliant recycling solutions. Geographic proximity to the Middle East may also position Pakistan to receive displaced tonnage as regional trade patterns adjust.

Turkey remained subdued, with limited activity during the holiday period. Continued depreciation of the Turkish Lira has increased the cost of vessel acquisitions, while softer steel prices and ongoing regulatory concerns have weighed on market confidence.

Despite firm pricing levels across key recycling destinations, the market remains constrained by a lack of available tonnage. Elevated freight earnings and strong oil prices continue to delay the flow of vessels into recycling channels.

 

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